Abra Capital Management explores the increasing acceptance of bitcoin as a reserve asset by corporate treasuries in light of U.S. Senator Cynthia Lummis's proposed bill to buy 1 billion bitcoins. Historically the domain of crypto-native companies, now over 4% of all bitcoin, valued around $50 billion, is held by various firms, led by MicroStrategy with a $13 billion portfolio. Companies view bitcoin as a stable store of value amidst U.S. dollar depreciation and declining traditional treasury assets. With a fixed supply cap of 21 million coins, bitcoin presents no long-term dilution, making it a more appealing option compared to gold. However, volatility poses risks, encouraging firms to allocate only part of their treasuries to bitcoin while diversifying their holdings. As geopolitical uncertainties rise and inflation remains a concern, firms like family offices and real estate businesses are integrating bitcoin in their strategies. This trend signals a broader corporate adoption of digital assets as financial strategies evolve.

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